Apergy sees Q4 revenue $255M-$270M, consensus $
Sees Q4 adjusted EBITDA $53M-$63M, depreciation & amortization expense around $30M, interest expense $9M, effective tax rate 22% to 24%. Apergy CEO Sivasankaran Somasundaram said, "For Q4, we expect continued weakness in U.S. onshore activity driven by traditionally lower seasonal activity, as well as our E&P customers' budget exhaustion and capital discipline, which we expect will result in a sequential decrease in revenue and adjusted EBITDA for Apergy. We expect the U.S. rig count to further decline in Q4 extending the destocking by our drill bit customers as they continue to adjust to lower drilling activity and adhere to capital discipline. In addition to the softening drilling activity, built into our fourth quarter outlook is an incremental sequential revenue impact of $5M from destocking from our drill bit customers. We view the destocking as a temporary phenomenon during periods of meaningful decline in the rig count. Given the short cycle nature of our portfolio and continued destocking in Q4, visibility continues to remain challenging; therefore, we will provide an update to our Q4 outlook in early December".